CLASS action specialist, Levitt Robinson, is set to seek leave to discontinue a case it filed against Australian Pharmaceutical Industries (API) in Victoria's Supreme Court last year (PD 12 Oct 2021), on behalf of a number of current and former Priceline Pharmacy franchisees.
The move to abandon the class action was announced in a statement from API to the Australian Securities Exchange (ASX) yesterday.
The company noted that it had "received correspondence from the claimants' legal representatives that they will seek the Court's leave to discontinue the class action".
"API intended to vigorously defend the action, but is pleased that the claims against it will be withdrawn subject to Court approval in the coming weeks," the company said.
"API remains focused on supporting Priceline Pharmacy franchisees through the current phase of the COVID-19 pandemic as they serve their communities."
Levitt Robinson had initally raised the prospect of bringing a case against API in May 2020, and called on current and former Priceline Pharmacy franchisees to join the suit against the banner group (PD 06 May 2020).
The firm alleged that franchise agreements between pharmacy owners and the Priceline banner signed at any time from 18 Nov 2010 onwards, may contain provisions "that may breach the current legislative framework which governs pharmacies in NSW, Queensland and Victoria", which API has denied.
The decision to pull the pin on the class action suit comes ahead of the expected takeover of API by retail conglomerate, Wesfarmers, which is due to be completed by the end of Mar, subject to being granted approval by the Australian Competition and Consumer Commission (PD 21 Jan).
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